Recommendations for an EU Chips Act 2.0: A stronger strategy for Europe’s technological competitiveness and resilience
Europe’s competitiveness and economic security hinge on keeping pace with the fast-evolving semiconductor landscape. Chips are the foundation for connectivity, defence, AI, clean energy, robotics and mobility. Europe holds world-class expertise in several parts of the global semiconductor value chain, yet its overall position remains fragile, exposing it to geopolitical risks, economic coercion, trade conflicts and supply shocks. The first Chips Act created momentum, but Europe now needs a stronger and more coordinated effort to meet its ambitions. As the semiconductor space accelerates globally, EU chips policy should respond with urgency and determination, ensuring that implementation is not only ambitious but also rapid enough to match international developments.
A Chips Act 2.0 must therefore provide a systemic and forward-looking strategy: consolidating Europe’s competitive advantages, tackling dependencies, generating demand for manufacturing capacity and ensuring that policies at national and EU levels work in synergy. This means setting realistic yet ambitious targets, leveraging investment, enabling collaborative R&D, addressing workforce shortages and embedding sustainability at the core of Europe’s semiconductor ecosystem. Furthermore, it must establish robust platforms for closer cooperation with like-minded partners, aimed at ensuring resilient and interconnected semiconductor supply chains and innovation ecosystems.
Through its national strategy, Chips from the North, Finland brings to the table strengths such as chip design, advanced pilot lines, and specialised materials and process technologies — reinforcing the EU’s collective capacity in a critical technology domain.
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